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Gold/Mining/Energy : Trico Marine Services (TMAR) -- Ignore unavailable to you. Want to Upgrade?

To: D.J.Smyth who wrote (678)	8/19/1998 5:16:00 PM
From: D.J.Smyth	Read Replies (1) \| Respond to of 1153

15:36 DJS Oil-Service Stocks Rally On Insider Buying, Dresser Earnings 15:36 DJS Oil-Service Stocks Rally On Insider Buying, Dresser Earnings NEW YORK -(Dow Jones)- Shares of several oil-service firms rose Wednesday as one company reported strong earnings and a report detailed insider buying among top officials in the industry. For example, industry bellwhether Schlumberger Ltd. (SLB) gained $1.563, or 2.9%, to end at $55.438, Diamond Offshore Drilling Inc. (DO) rose $1.125, or 4.6%, to $25.75, and Halliburton Inc. (HAL) added $2.625, or 9%, to $31.875. The sector got a boost early when Dresser Industries Inc. said its third-quarter net income surged 33% from a year earlier, easily topping Wall Street forecasts as demand grew for the firm's drilling equipment and services. Dresser's stock (DI) closed up $2.625, or 9.1%, to $31.50. The company is set to merge with Halliburton later this year. A dramatic slide in world oil prices since last fall has clouded the outlook for oil companies to explore for oil and antural gas. This in turn has caused investors to question growth propsects for firms that rent drilling rigs, evaluate rock, make drill bits and provide the products and services that make the oilfield work. The Wall Street Journal reported earlier that industry insiders bought $2.7 million of stock in June, the latest month for which figures are available, according to Federal Filings Business News. "This round of buying marks the first time since last year's collapse in the oil markets that industry insiders have stepped up in any meaningful way," says Craig Columbus, vice president of research at Bethesda, Md.-based Disclosure Inc., which tracks insider transactions for institutional investors. "Historically, oil-drilling and oil-service insiders have been a very reliable barometer of oil prices over the next six to nine months," said Columbus. "The heavy insider selling in the fall of 1997 was a classic example." Oil prices dropped sharply afterward. However, Columbus warns that the fundamentals still don't look good for many of these stocks. "These insiders know that if takeover activity picks up in the industry or we have a cold winter, they are getting these shares at fire-sale prices," he added. Energy futures on the New York Mercantile Exchange were also moving higher as crude oil got a boost from inventory data showing a sharp draw in gasoline stocks amid record demand. Copyright (c) 1998 Dow Jones & Company, Inc. All Rights Reserved. 08/19 3:36p CDT